'Marketing Final Paper Essay\r'

'Yum! Brands is the earth’s king-sizest eatery association with oer 38,000 eating houses in ein truthplace one hundred ten countries and territories and to a greater extent than 1 cardinal associates. Yum Brands is as well as a attracter inside the quick redevelopment Restaurants (QSR) exertion in China, with everywhere 3,500 eating places in the region (i.e., Taiwan, Mainland China, and Thailand), more(prenominal) than 1,800 of which argon located in Mainland China.\r\nYum Brands ope pass judgment in the Food Service application, which progeny neer be replaced or eruptdated everyplace collectible to change magnitude technology or change magnitude competition. Consumers provide always need to dupe from the Food Service Industry. Growth and spending is guaranteed with extend of the humanity population and adenylic acidlification to special countries world wide.\r\nIn 2010, the fede symmetryn incr projecting its discharge income by 10% from $824 trillion in 2009 to $1.16 billion in 2010. Yum Brands passs to show ardent gross revenue, bread, and gain.\r\nYum Brands is the worldwide draw in multi brand nameing, which stretchs consumers more choice and contrivance at one eatery place from a combination of KFC, greaser toll, pizza pie shanty, A& group A;W or farsighted tin can silver gray’s brands.\r\nYum Brands also shows enormous embodied affable Responsibility in the assiduity. Yum! Ranked #337 come out of 500 on Newsweek’s 2010 cat valium Rankings U.S. list #62 on somatic fond Responsibility Magazine’s 100 Best Corporate Citizens numerate of 2010, #33 in 2009.\r\nYum Brands has cemented their products with unique bask differentiation by making their bonds the attractors in the industry. A& axerophthol;W is Root Beer and KFC is fried chicken. Yum Brands has present a strong dividing line design and corporate goals for competing in the global mart.\r\n penetration\r\nY um Brands holds a strong position as the number 2 familiarity in the Food Service Industry. The aliment Service Industry is a necessary industry that will non see great change due to innovation or a pertly competitor go into the market place. The market is strong and consistent base off consumer needs. The fast nourishment industry is cheap and equal effective, providing brilliant serve to consumers at the refinement(a) possible prices.\r\nYum Brands is the world’s massivest restaurant association with oer 38,000 restaurants in more than 110 countries and territories and everyplace 1 gazillion employees. This shows the size of Yum Brands, a global presence that will continue to increase\r\nYum Brands has also displayed global rail line and selling strategies. * Build leading brands crossways China in every crucial category * Drive aggressive world-wide elaborateness and build strong brands everyplace * Dramatic everyy improve U.S. brand positions, unan imity and returns * Drive industry-leading, long-term helpingholder and certifye c atomic number 18 for\r\nDavid C Novak has been CEO of Yum Brands (YUM) for 6 divisions. Mr. Novak has been with the caller-up for20 grades. The 53 year old administrator ranks 1 within Forbes rankings of in high spiritsest paid restaurant CEO’s.\r\nWhile virtually consumers atomic number 18 unaw ar of the p atomic number 18nt corporation, Yum Brands is silently pickings a more compulsory sh are of the global food industry. Its wholesome-kn birth(a) brands entangle pizza army hut, KFC, greaser-Bell, immense John funds’s and A& adenylic acid;W Restaurants.\r\nYum Brands continue to show festering that will put it on par with the leader in the Food Service Industry, McDonalds? disrespect having more localization principles than McDonalds, McDonalds annual revenue of $23.1 trillion dwarf Yum Brands at $11.3 Billion\r\nOverview of Yum Brands\r\nYum! was created on Octob er 7, 1997, as Tricon Global Restaurants, Inc. an independent company, as a result of a spin-outfrom PepsiCo, which possess and franchised the KFC, Pizza Hut, and Taco Bell brands worldwide. Because of the company’s previous relationship with Pepsi, Yum! Brands has a lifetime contract with PepsiCo, with nonable exceptions world the contract of A& vitamin A;W Restaurants with Dr Pepper Snapple Group to be the easy lay restaurant provider of A&W Root Beer.\r\nYum Brands is the world’s large(p)st restaurant company with over 37,000 restaurants in more than 110 countries and territories. in that location is credibly a Yum restaurant near you. Its well-known brands include Pizza Hut, KFC, Taco-Bell, Long John Silver’s and A&W Restaurants. t withdrawher are 14,001 stores outside(a)ly including 3,664 locations in China. Yum has 17,476 stores in the U.S. A center of 77% are owned by franchisees. The company implements practices and procedures to maintain a high level of help including Customer manic disorder Training and CHAMPS (which measures operational basics bid Cleanliness, Hospitality, Accuracy, Maintenance, harvest-feast Quality and Speed). A&W Restaurants, Inc., based in Louisville, Ky., is the drawn-out running fast(a) service franchise chain in America. Since 1919, A&W All-American Food has been parcel a signature frosty mug ascendent beer float and All-American pure- flush hamburgers and hot dogs.\r\nThere are over 600 A&W All American Food outlets in 13 countries and territories some the world and more or little 600 points of distribution at Yum! Brands multibrand restaurants. There are approximately 344 A&W All-American Food restaurants in the U.S. and more than 290 in 11 some oppositewise countries. KFC mess, based in Louisville, Ky., is the world’s most favourite chicken restaurant chain specializing in Original Recipe, Extra kinky and Colonel’s Crispy Strips with home-s tyle sides, Honey BBQ Wings, and freshly made chicken sandwiches. Since its founding by Colonel Harland Sanders in 1952, KFC has been serving customers delicious, already-prepared complete family meals at affordable prices.\r\nThere are over 12,000 KFC outlets in more than 102 countries and territories most the world serving some eight one one million million million million customers all(prenominal) day. Long John Silver’s, Inc. based in Louisville, Ky., is the world’s largest quick-service seafood chain, specializing in batter-dipped fish, chicken, shrimp and hushpuppies. Inspired by Robert Louis Stevenson’s classic Treasure Island, Long John Silver’s was founded in 1969. Today, there are more than 1,000 Long John Silver’s, Inc. restaurants worldwide, and over 350 additional points of distribution in multibrand restaurants.\r\nPizza Hut Inc., based in Dallas, Texas, is the world’s largest pizza restaurant company specializing in Pan P izza, Thin ‘N Crispy pizza, Hand-Tossed Style Pizza and Stuffed Crust Pizza. There are more than 6,100 restaurants in the get together States and more than 4,900 restaurants in over 92 countries and territories around the world. The company is the recognized leader in the pizza category. Taco Bell Corp. is the nation’s leading Mexican-style quick service restaurant chain serving tacos, burritos, signature Quesadillas, nachos and other specialty items. Taco Bell serves more than 35 million consumers each week in more than 5,100 restaurants in the U.S.\r\nMarketing Strategy\r\nProduct\r\nYum Brand is in the food service industry but they also sense of smell to market their restaurant custody, as individuals own 80% of Yum Brands restaurant chains. Yum Brands is the largest restaurant provider of chicken, tacos, fish, and pizza to the consumer market and they sell very recognizable products. In their marketing of products, Yum Brands focuses less on individual products and more on the brand as a whole. afterward conducting comprehensible market research, Yum Brands found that the absolute majority of people purchasing from one of their restaurants are not looking for a specific product. Yum Brands found that the majority of consumers choose Yum Brands because of their comfortable locations, low prices, and the tonus of food is high.\r\nKFC sells the most recognizable brand of chicken in the world, although they engage many competitors, none of their competitors withdraw as many locations or as much brand recognition as KFC. However, there construct been some large selling Items, which Yum Brands has chosen to market individually, much(prenominal) as the KFC 12 piece pail and Taco Bell’s infatuation Wrap Supreme. With large ticket items, Yum Brands has designed custom meal manages think around these items. Instead of simply offering chips and a drink or a biscuit, Yum Brands has focused on supersized meals and the marketing stra tegy of get the most for your money. They do this by supersizing the meals consumers get at a price increase that is both favorable to the consumer and beneficial to costs.\r\n bell\r\nThe goal of Yum Brands is to compete at the lowest price possible and they do this by owning distribution centers around the world and lordly the process that food comes into one of their restaurants, from the provoke to the customer. Because Yum Brands is the largest supplier of chicken, tacos, fish, and pizza to the market they have a competitive advantage over their competitors simply because they can instigate more product, therefrom they can provide bring low prices. This industry’s customers are characterized as highly price sensitive so they can easily switch to a product that is like in quality and service but offered at a lower price. Also, switching costs are quite low. Customers do not have to incur any cost for not buying from a firm.\r\nPlace\r\nYum Brands has more physical locations than any other restaurant in the world. Yum Brands operates over 38,000 restaurants in 110 countries. Yum Brands has focused on wash room for all consumers in the anatomical structure of their restaurant chains. With large physical location presence in the market, Yum Brands can ensure stability as well as harvest-feast. Recent expansion into China has also proved to be a booming market for more physical locations and gross sales festering. Yum Brands continues to surge in revenue and market share with each additional restaurant opened in expanding markets such as China.\r\nPromotion\r\n hostile competitors such as McDonalds who attempt to brand their products like the Big Mac, Yum Brands focuses on controlling the entire market. KFC chicken is an American ground of culture. KFC dominates the chicken market because of the great spirit and wide brand recognition of Colonel Sanders. There are fierce advertising battles among the large restaurant chains McDonalds, KFC, Pizza Hut, Subway, Taco Bell. Because brand recognition and price so greatly affect consumers, marketers want to crystallize customers aware of potfuls occurring at their chains. The Food Industry is one of the most heavily marketing industries in the world. In 2010, the fast food industry spent $4.2 Billion in advertising.\r\nAnalysis\r\nYum Brands has shown prodigious, consistent, large monetary gain in the last year. (YUM) has a market cowling of $23.99 billion with a price-to- network ratio of 20.75. The stock up has traded in a 52-week cheat on between $45.94 and $57.75. The stock is currently job around $52. On July 14th, the company inform second rump revenues of $2.82 billion, compared to revenues of $2.57 billion in the second quarter of 2010. Second quarter net income was $$1.16 billion compared to net income of $824 million in the second quarter of 2010. Yum Brands has shown satisfying financial proceeds over the prehistorical year, and projects continued offshoot and expansion through 2012. One of YUM’s competitors is McDonald’s Corporation (MCD). McDonald’s is currently trading around $90 with a market cap of $90.14 billion and a price-to-earnings ratio of 17.68. McDonalds pays a dividend that yields 2.8% versus YUM, whose dividend yields 2.2%.\r\nYUM is one of the largest food service company’s in the world. In 2010, the company increased its net income by 10% from $824 million in 2009 to $1.16 billion in 2010. YUM is an international company that is rapidly increasing its foreign earnings. In 2010, YUM took in $755 million from China while taking in $700 million in the united States. On September 15th Jim Cramer endorsed YUM. YUM has a insurance of paying out 35 to 40% of its profits in dividends. Over the last five years, the company has done well and has increased its dividend by 34.7%. I retrieve that YUM will continue to increase earnings, and that the dividend and the stock price will follow.\ r\nThis ratio shows us the portionage of do assets made up by goodwill and other intangibles is called the impalpable Asset Ratio. Heiserman, creater of the ratio, says he views anything over 20% as worrisome, â€Å"because management might be overpaying for the acquisition or acquisitions that gave rise to the goodwill.” Yum! Brands has an intangible assets ratio of 11%. This is below Heiserman’s threshold, and a sign that any gain you see with the company is healthy (Moore).\r\nThe strengths of Yum Brands is in their global reach and consistent financial growth. Also Yum Brands operates several large chains in a strategic move to diversify their assets and sales. However, their largest competitor McDonalds, has also shown significant financial growth and expansion. In 2010 McDonalds saying a global sales growth of 5.0% and earnings per share growth of 11%. Although, McDonalds is also showing large profits and increased growth, Yum Brands is increasing at a fast er rate. Yum Brands saw a 10% growth in sales in just the third quarter of 2010. Yum Brands is a low cost leader in the food industry with unique tasting differentiation. The wide availability and unbeatable cook of Yum Brand chains make it cheery and affordable for customers to buy from Yum Brands.\r\nYum Brands has cemented their products with unique appreciation differentiation by making their chains the leaders in the industry. A&W is Root Beer and KFC is fried chicken. Yum Brands has shown an excellent demonstration of Focus Strategies by not trying to compete with McDonalds. Yum Brands does not offer hamburgers, instead they have focused on cornering the market in Tacos, Fried Chicken, Pizza, Fish, and fountain beverages. This strategy is key to their continued growth. By letting McDonalds control burgers and fries, Yum Brands can belatedly take control of all other consumer needs in the fast food industry. This strategy will lead to Yum Brands besting McDonalds bec ause Yum Brands is showing much greater growth. However, McDonalds revenues are still much greater than Yum Brands. In 2010 McDonalds brought in $23.1Billion to Yum Brands $11.3 Billion.\r\nYum Brands has great Corporate Social Responsibility and leads many initiatives around the globe. In Australia, KFC has been working on a shut Loop recycling project for the agone three years. This program has attracted never in front seen government funding and is a world leading QSR recycling initiative. No other QSR in Australia (nor have we found elsewhere in world) is doing anything on this scale and equal. KFC has been awarded $400K from the Australian Packaging Covenant and state governments to go towards the infrastructure of the new â€Å"Split stack away” to support this initiative. In addition, 100 percent of waste oil is recycled.\r\nYum! Ranked #337 out of 500 on Newsweek’s 2010 spurt Rankings U.S. list #62 on Corporate Social Responsibility Magazine’s 100 B est Corporate Citizens proclivity of 2010, #33 in 2009 The company is pass judgment to enjoy a number of tailwinds in 2012 including lower interest expense due to favorable debt issuance over the ult couple of years and retirement of the April 2011 bonds as well as around 20 million currency translation benefits in China. Although Yum’s market is exposed to risks, such as changes in interest rates such as food cost pressure, wage inflation in China, competition, unpredicted margin pressure, inability to execute its growth plan, and food safety. Foreign currency convince rate risks exist as international operating profit constitutes around 50% of the company’s operating profit.\r\n expose variable factors affecting the U.S. results include consumer spending, petrol prices, housing market conditions, consumer credit, and stock market volatility. Taco Bell, which accounts for more than 60% of the total U.S. earnings, is presently the most important home(prenominal) brand. The recent Taco Bell pillowcase related to the content and quality of its beef products has negatively impacted the sales. Although, on April 18, Alabama-based Beasley Allen legal philosophy firm voluntarily withdrew the allegation, YUM expects the negative impact to continue in 2012.\r\nKFC and Pizza Hut are the primary concepts, accounting for well 96% of total YUM restaurants within the YUM Restaurants foreign (YRI) division. Each concept offers sit-in as well as take-home options for customers. YUM has over 38,000 restaurants in over 110 countries. YUM is also a leader within the Quick Service Restaurants (QSR) industry in China, with over 3,500 restaurants in the region (i.e., Taiwan, Mainland China, and Thailand), more than 1,800 of which are located in Mainland China.\r\nYum Brands is the worldwide leader in multi branding, which offers consumers more choice and convenience at one restaurant location from a combination of KFC, Taco Bell, Pizza Hut, A&W or Long John Silver’s brands.\r\nYum Brands has seen substantial annual growth for the historical 2 fiscal years.\r\nYum has seen tremendous growth in china with over 50% of Yum’s income coming from outside of the United States.\r\nYum is putting all its chips in China, and growth there was strong. Same store sales grew 19% in the quarter, compared with a 6% increase a year ago. Margins, though, eased and fell to 21.3%, from 25.2% a year ago. direct profits surged 13% to $301 million. Store sales in the U.S. fell 3%, compared with a 1% gain a year ago, while operating profits hit $143 million, down 16% from a year ago. Internationally, the company earned $163 million (up 15%) and saw system sales growth increase by 13% (Fontevecchia).\r\nIn May of 2011, Yum agreed to purchase Chinese hotpot chain Little Sheep for HK$4.56 billion. The deal spent more than 4 months in anti-trust review by the Chinese Ministry of Commerce, to determine whether or not the transaction would resu lt in a monopolistic positioning of Yum in the country’s restaurant industry. The Chinese Ministry just approved the deal in November of 2011, according to Little Sheep representatives. This new acquisition should continue to increase growth in China.\r\nYum recently raised its 2012 earnings per share forecast to $2.85, excluding one-time items, meaning growth of at least 13 percent, patronage what Chief Executive David Novak said were â€Å" bilk U.S. results. That compares to its previous forecast of a 12 percent gain. The forecast comes ahead of Yum’s annual investor day on November thirtieth and two months after the company sought-after(a) to reassure Wall Street that business in China remained on track. With this reassurance, Yum will continue to expand, giving investors a strong reason to invest. The share price went up in response to this news (Reuters).\r\nIn direct growth, Yum Brands far exceeds any other competition in the industry including their largest co mpetitor, McDonalds. If Yum Brands continues this net growth, they are on par to surpass McDonalds, becoming the global leader in the Food Service Industry.\r\nThe corporate structure of Yum Brands is strong, the company is continuing to increase involvement opportunities and expand their staff. David C Novak has been CEO of Yum Brands (YUM) for 6 years. Mr. Novak has been with the company for 20 years. The board of trustees overseas consistent growth of the company and the loading values of Yum Brands have served them well thus far in the Industry.\r\n'